The Fancy Shoe company sells shoes for $125 each. Manufacturing cost is $53.40 per shoe; marketing...

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The Fancy Shoe company sells shoes for $125 each. Manufacturing cost is $53.40 per shoe; marketing costs are $21.35 per shoe; and royalty payments are 15% of the selling price. The fixed cost of preparing the shoes is $398,000. Capacity is 30,000 shoes. (A) Compute the break-even point (i) in units; (ii) in dollars; (B) Determine the break-even point in units if fixed costs are increased by $5,300 while manufacturing cost is reduced by $4.80 per shoe. (C) In a new situation (ignore question 1(b)), determine the break-even point in units if the selling price is increased by 12% while fixed costs are decreased by $3,900. The Fancy Shoe company sells shoes for $125 each. Manufacturing cost is $53.40 per shoe; marketing costs are $21.35 per shoe; and royalty payments are 15% of the selling price. The fixed cost of preparing the shoes is $398,000. Capacity is 30,000 shoes. (A) Compute the break-even point (i) in units; (ii) in dollars; (B) Determine the break-even point in units if fixed costs are increased by $5,300 while manufacturing cost is reduced by $4.80 per shoe. (C) In a new situation (ignore question 1(b)), determine the break-even point in units if the selling price is increased by 12% while fixed costs are decreased by $3,900.

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Selling price per shoe 125 Manufacturing cost 5340 Marketing cost 213... View the full answer